The Federal Inland Revenue Service (FIRS) has issued a Public Notice notifying the general public of the establishment of a Non-Resident Persons’ Tax Office (NRPTO). The Public Notice directs all non-resident persons liable to tax in Nigeria to submit every return, correspondence or inquiry relating to all the taxes administered by the FIRS to the NRPTO effective 1 January 2020.
According to FIRS Circular, A non-resident Company is a company or corporation that is not registered or incorporated in Nigeria but which derives income or profits from Nigeria. Also a non-resident individual is a person who is not domiciled in Nigeria or who stays in Nigeria for less than 183 days but derives income or profits from Nigeria.
A non-resident individual becomes liable to tax from the day he commences to carry on a trade, business, vocation, or profession in Nigeria. However, he is liable to tax in respect of employment income when he becomes resident.
Every company, resident and non-resident, is liable to tax in Nigeria if its income is liable to tax under the provisions of the Companies Incomes Tax Act. It is also to be pointed out that the Nigerian tax laws do not exempt the income of a branch from tax.
FIRS has identified non-resident taxpayers as a very important segment of the tax paying public for the purpose of devoting special attention to them. This is to enhance tax certainty, promote voluntary compliance, reduce tax disputes and avoid incidence of double taxation.
The Public Notice also specifies that the NRPTO is located within the International Tax Department in the FIRS Building at Awolowo Road, Ikoyi, Lagos and states that all tax files of non-resident persons shall be domiciled at the NRPTO from 1 January 2020.
In view of the above, non-resident persons are encouraged to seek appropriate professional support in complying with the new administrative directive in order to “play safe” and avoid wrought of the law as they carry out their business activities in Nigeria.
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